Social Security’s 2027 COLA Will Be Announced Oct. 14. Here’s Why It’s the Year’s Most Important Date for Retirees
Millions of retirees are already falling behind on inflation with this year's modest Social Security raise, and one date in October will determine whether 2027 brings relief or more financial pressure.
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There’s a reason seniors on Social Security have been struggling financially this year. In January, benefits got a 2.8% cost-of-living adjustment, or COLA. But inflation has far surpassed that COLA since it arrived.
In July, for example, the Consumer Price Index, which measures changes in the cost of consumer goods and services, rose 3.4% on an annual basis. But seniors’ COLA didn’t increase just because inflation did during the year. So based on this year’s raise, many Social Security recipients are falling behind.
Plus, the cost of Medicare Part B rose by almost $18 per month at the start of the year. Seniors who are enrolled in Social Security and Medicare at the same time pay their Part B premiums out of their monthly benefits. So not only was 2026’s COLA modest, but Part B ate up a lot of the increase.
At this point, many Social Security recipients are eager to know what their 2027 COLA will amount to. And they don’t have to wait too much longer to find out.
A big announcement is coming on Oct. 14
There’s a reason Oct. 14 is being hailed as the most important day of the year for Social Security. It’s when an official COLA for 2027 is expected to be announced.
The reason seniors need to wait that long is that Social Security COLAs are based on third quarter inflation data. September’s data won’t arrive until Oct. 14, so a COLA can’t be announced before then.
Of course, it’s not a given that the COLA announcement will be on time. Last year, the Social Security COLA announcement was delayed due to the government shutdown. We can hope something similar doesn’t happen this time around.
It’s not just a COLA seniors are waiting on
Oct. 14 isn’t just the day the Social Security Administration is expected to reveal a 2027 COLA. There should also be news of other key changes to the program that take effect in the new year.
Some of the major announcements slated for that day include:
- A new earnings test limit, which determines how much Social Security recipients who claim prior to full retirement age can earn from a job before having benefits withheld
- Social Security’s maximum monthly benefit
- Social Security’s wage cap, which dictates how much income will be taxed in 2027 to fund the program
- Social Security’s work credit value, which tells workers how much they need to earn to qualify for the credits that eventually render them eligible for retirement benefits
Of course, the latter two items don’t impact retirees as much as the first two. But all told, a lot of big news is in store for Social Security come mid-October.
It’s also important to note that even once an official 2027 COLA is announced, Social Security recipients may not be able to calculate their raise entirely. That’s because a Medicare Part B hike could eat into that increase.
Medicare costs for 2027 may not become available until November. So seniors may only get a partial picture of their finances on Oct. 14.
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Maurie Backman has more than a decade of experience writing about financial topics, including retirement, investing, Social Security, and real estate. Her work has appeared on sites that include The Motley Fool, USA Today, U.S. News & World Report, and CNN Underscored.
